Oil is heading for its first monthly gain of the year as supply tightens. Prices rose slightly on Friday, as Brent was about to make its first monthly gain of the year, with the sharp reduction in U.S. oil inventories overriding concerns that fuel demand could be further dampened by further interest rate hikes

Brent oil futures for September delivery rose 16 cents or 0.2% to stand at $74.67 at 0405 GMT. The less-negotiated first-month contract, which expires Friday, was up 30 cents to $74.64. American West Texas Intermediate (WTI) crude gained 8 cents or 0.1% to $69.95

After rising slightly on Thursday, both benchmarks were on track to increase by more than 2.5% in June. While this would be Brent's first monthly gain for 2023, it would be a second gain for WTI after a gain in April. Despite the likely monthly gain, on a quarterly basis, Brent seems to be heading for a loss of around 6%, while WTI seems to be heading for a fall of around 7%